It appears as though recent reports were incorrect, as Midway confirmed to Joystiq this morning that the studios not picked up by Warner Bros. in the acquisition bid have 60 days until they're out of work. From Midway Newcastle (Wheelman, Necessary Force) to Midway San Diego (TNA) and various "old sports titles" (Blitz, NBA Ballers) in between, anyone looking to pick up the remaining studios has roughly two months to do so.

"We had a court hearing yesterday and the end result of that is the sale was approved and the closing will occur within the next 10 days," a Midway representative told us, continuing, "Since we didn't get any bids for the San Diego assets, we actually gave the employees a required 60-day warning." According to the US Department of Labor, employees of 100 or more person companies must be warned 60 days prior to being let go due to "plant closure" (or studio closure, in this case).

Midway remains positive on the San Diego studio, saying, "For now those employees are continuing to work and it's still entirely possible that a bidder could come in and acquire the San Diego assets." When asked what would happen to the TNA license if the studio did go under, Midway was unsure. Maybe THQ and its fancy new business plan can help a brotha out?

Running Tigon Studios is a bit of a strange job to have. Ian Stevens, the man in charge, is responsible for not just organizing development talent to make games like this year's Chronicles of Riddick: Assault on Dark Athena, but also working with Hollywood. And, unsurprisingly, he says it's a bit of an uphill battle, telling GamesIndustry.biz, "It's really hard to take something that's native to a certain medium and just draw a line, which is what people are usually trying to do [with games based on movies.]"

He equates the attention Hollywood has been giving to game versions of its films with "action figures, pictures on cereal boxes, and [themed] pajamas," saying it's just part of the "licensing and merchandising" of a property, rather than creating something unique and well-crafted from the start. Furthermore, Stevens says that the development studios who are working with nothing (think Ben 10) and making something -- anything -- out of it, are the real talent in the industry. "If you gave that team in Newcastle [Midway Newcastle] - through all that they've struggled with, technology, corporate business, all these different things - the kind of opportunity that someone like Valve has," he says, leaving us to postulate on the ending there. We'll let you guys fill that in all by yourselves.

It appears that Warner Bros. was the sole bidder for Midway, meaning the company's $33 million offer likely nets it the whole mortal kit and kaboodle. The LA Times reports that there's still some issues to deal with before the acquisition is finalized -- involving creditors, objections and those who had deals with Midway, including Mortal Kombat producer Lawrence Kasanoff.

If the deal is finalized, WBIE will add more titles to its roster, including the next Mortal Kombat game and This is Vegas. Warner could also resurrect Joust and Spy Hunter if it wanted to. But, before all that, the company may still have another acquisition looming with Codemasters.

With Midway reportedly looking to sell off its Mortal Kombat assets, one concerned party hopes to peer underneath the tent the beleaguered publisher has pitched inside the U.S. Bankruptcy Court and settle the sticky issue of intellectual property ownership. Film producer Lawrence Kasanoff and his company, Threshold Entertainment, have filed a suit in the hopes of eliciting judgment "declaring the existence and scope of its licenses, interests and intellectual property rights in Mortal Kombat-related intellectual property." In other words: "Hey, isn't that some of my stuff in this garage sale?"

It is the suit's assertion that the Mortal Kombat franchise is "far more a creation of Threshold and Kasanoff than of Midway," with Threshold's film adaptations and TV shows allegedly signifying more creative input than that of Midway, which was "almost entirely limited to the videogames." That's right! Bet you didn't know that Mortal Kombat was a "videogame" before it became an award-winning film franchise!

Threshold backs up its claims by pointing out the "minimal back-story and mythology" provided by the games, as well as the "flat, cookie-cutter characters" it had to use as a basis for its derivative works. Indeed, anybody who's seen "Mortal Kombat: Annihilation" is sure to agree that the 78 characters in that rich, compelling film -- including the cyborg and the lizard guy -- were so much more fleshed out right until they all died or something.

[Via GamePolitics]

Source -- Complaint (warning: PDF)

You are by now likely familiar with the story behind Necessary Force, an open-world action game being made by Midway Newcastle, which has until month's end to find a buyer or face closure. We dug a debut trailer unveiled last week, and we're equally into some concept art added to the game's official site.

Could someone please step in here? We know times are tight, but we really want to play this, and Joystiq Publishing has all its liquid capital in N-Gage development (no, we don't want to talk about it).

It seems a certain beleaguered studio listened to our humble suggestion! Midway Newcastle, one of the splinter studios that wasn't rescued in the Warner Bros. buyout of Midway, just revealed its formerly unannounced open-world action game in an attempt to drum up buyers before the developer is forced to close down in just 13 days. The new IP is called Necessary Force -- a "gritty detective drama" about a cop who "sets his own rules." So, like Nash Bridges, only grittier.

Details about the game are slim, though three months of development have resulted in a gameplay-free teaser trailer (seen above). What do you guys think? Is this the ace in the hole Midway Newcastle needed to stave off the reaper?

If you've got an extra few million bucks lying around, we can think of a couple of video game development studios that could really use it. According to a recent report from Guardian.uk, Midway's Newcastle and San Diego studios are facing closure if they can't find buyers by the end of June. For those whose extended WoW sessions have left them chronologically unaware, that's just two weeks from today.

The Guardian's article focuses on the Newcastle studio -- creators of the recently released Diesel-fest Wheelman -- which is trying to stave off death by finding investors for its unannounced open-world action game. We're far from financial experts, but perhaps keeping said project under wraps isn't the best way to attract suitors in such a brief timeframe. Just, you know, a suggestion.

[Via CVG]

We'll be straight with you -- the whole Midway legal debacle is far from over. We are, however, one step closer to the dissolution of Midway as it stands now, with the company's creditors and 87% shareholder Mark Thomas reaching an agreement and ending at least one lawsuit. After purchasing the stocks from former majority shareholder Sumner Redstone for the low, low price of $100k, Thomas is cashing out -- he'll be receiving "as much as $5 million ahead of other creditors, whose claims aren't backed by collateral," according to Bloomberg.

The lawyer representing Midway's creditors, Linda Dakin-Grimm, told Bloomberg, "The committee is satisfied with the settlement," noting that it would allow for efforts to collect on other debts to proceed. Warner Bros. Interactive has already put in its $33 million bid for the company, whose auction will end on June 29.

Though many questions remain unanswered regarding the relationship between Sumner Redstone, Midway's Board of Directors and Mark Thomas, one thing is absolutely certain: the folks still employed by Midway are not profiting from the executive shenanigans. We wish them the best and encourage any employee who would like to speak up about their time at the troubled publisher to contact us, anonymity ensured.

[Via GamePolitics]

Apparently, struggling publisher Midway has more than just Warner Bros. bidding on its remaining assets. After last week's announcement of WB's $33 million dollar offer to acquire the lion's share of Midway's properties, Midway released a statement today detailing the process and, in so many words, is allowing for larger bids. "Midway recently announced a stalking horse asset purchase agreement, which is expected to receive court approval, subject to higher or better bids, in a hearing on June 2, 2009," reads the statement. Additionally, all remaining assets owned by Midway are available for bidding as well -- including the TNA Wrestling franchise not included in the WB bid -- until the court-supervised auction takes place on June 29th.

Midway's Geoff Mogilner told Joystiq this afternoon that today's release "doesn't change that agreement [with WB]" and either side will suffer financial penalties for backing out. He also noted that the acquisition has no effect on the development teams employed by Midway as "people aren't assets." Yet, Geoff. Yet. Seriously though, he told us that any bidder wishing to acquire development teams would have to engage in a "separate acquisition" and any winning bidder on Midway's assets won't take on any of the massive debt the company is currently weighed down by. He also noted that the recipient(s) of the money from this auction have yet to be decided. Standing in line for a payout are a laundry list of creditors along with mystery man Mark Thomas.

When we read about Midway's recent troubles, we're glad we don't own any piece of the company. However, Warner Bros. executives see the same stories and think "we need that." Midway announced today that a "stalking horse" asset purchase agreement with Warner Bros. has commenced, with Warner bidding $33 million for the majority of Midway's assets, including studios in Chicago and Seattle, as well as the Mortal Kombat franchise.

According to Midway's press release, the agreement does not include rights to TNA wrestling games, nor Midway's San Diego and Newcastle studios.

This isn't a sure thing yet: before the Warner agreement goes through, other "qualified buyers" will be allowed to put in bids in a "court-supervised auction process."

Sumner Redstone, his daughter Shari (a former Midway board member, mind you) and the mysterious Mark Thomas are all being sued, among others, by the various creditors that a nearly penniless Midway owes money to. Gamasutra obtained a copy of a 29-page lawsuit, detailing the alleged financial liberties taken by Midway's board (as well as the majority stockholders -- Sumner Redstone and now Mark Thomas), which accuses specific people of "breach of fiduciary duty, corporate waste and unjust enrichment."

The suit claims Midway's current financial situation as one that "arises out of a series of disastrous and ill-advised financial transactions that largely occurred during 2008," further positing that Midway's board "either approved of the transactions or, upon learning of them, looked the other way -- taking no steps to investigate and unwind them." According to the report, Redstone's now famous infamous sale of Midway to Mark Thomas for only $100,000 was an effort to obtain a "massive tax refund," sacrificing Midway in the process. Finally, the suit states that Midway, as a company, has been "insolvent" since some time in late 2007 and its board of directors simply turned a blind eye, allowing the company to sink further into debt.

Oh, and Frank from legal? Your wife wants you home. She knows you've been pretending to go to work for the last seven months.

A man like John Singleton needs no introduction, especially around the leaky decks of the Joystiq oil tanker. Every week, we usually enjoy a movie to break up the monotony of teh blawging. Almost always, that movie is Baby Boy. Now, the directorial genius of Mr. Singleton is being applied to a film version of Vin Diesel's gaming, uh ... triumph, Wheelman. And not only that, but Vin Diesel will also star, Variety reports.

The film -- titled simply The Wheelman -- currently has a script and is being put into production by Paramount. The movie will focus on "an expert driver (Diesel) who comes out of retirement to protect a woman from his past." This will be a nice opportunity for Diesel and Singleton to work together, considering Singleton directed 2 Fast 2 Furious, the movie sequel that Diesel opted out of.

[Via BD]

For those who didn't keep up with the collapse of Midway in real time, or aren't in the mood to check out every bit of minutia about the epic, Gamasutra has extracted the highlights. The piece showcases the publisher's financial issues -- like the fact Midway hasn't had any annual profits since 1999 -- the management's lack of vision, and finally the last couple years where even the most casual industry observer could watch things go horribly wrong.

The second half of the feature covers the anatomy of the disaster and stops short of getting into these past six months, which, in fairness, given the mysterious Mark Thomas, still makes very little sense. It's definitely worth the read for those who want to know how not to run a company, and for those who just like to point and cry at the stupid.

Just a week after casting itself into uncertain waters, Midway has reportedly gotten a bite -- er, been bitten by Warner Bros. Interactive. Now comes the hard part: reeling in the deal. After losing Eidos to Square Enix, Warner's got a grumbling in its tummy for cheap chow, and for a proposed $30 million, Midway is a relatively inexpensive meal for the big fish to swallow. Still, much of Midway is simply indigestible.

An anonymous source tells MCV, "Warner is pretty confident that they will get Midway ... They look ready to put the money on the table." Whether that money is the full $30 million or just a portion of the asking price (for specific IPs like Mortal Kombat, etc.) is allegedly keeping the deal on the line. Will it snap? Oh, the suspense!

Embattled Midway is back in court, with creditors asking for the head of majority stockholder (and mystery man) Mark Thomas. And Judge Kevin Gross seems inclined to side with the creditors, as bankruptcy proceedings go forward and he calls out former Midway owner National Amusements, Inc. (and it's owner, Sumner Redstone) for treating Midway "like it was a toy."

As the publisher's set to run out of money by June, various creditors are in court fighting over the company's remaining assets and, in the process, Judge Gross is reviewing the somewhat dubious sale of Midway to the aforementioned Mark Thomas. To help put the court proceedings into perspective, we contacted Joystiq Law of the Game writer (and total lawyer) Mark Methenitis, who said, "The Midway sale circumstances are the type of facts that often make a court suspicious. Even though NAI's business justification of the sale does seemingly make sense, the sale of a company that size with debts that large for a net amount so small is suspicious to say the least."

There's only a few months left until June so we're sure to see the results of this bankruptcy case play out in no time at all. Here's hoping the one profitable team at Midway can save themselves before the whole ship sinks.